China's LONGi announces solar plant for India

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Solar cell makers LONGi has announced it will set up the first Chinese solar manufacturing plant in India with an investment of 309 million US dollars.

The company plans to invest 240 million dollars in actual construction costs and 68 million US dollars in working capital. The plant will be located in the southeastern state of Andhra Pradesh and will manufacture 1 GW solar PV that will include 500 MW of cells and 500 MW of modules.

Max Xia, strategy and global marketing director of LONGi Solar Technology Co. Ltd said, said manufacturing is likely to start next year.

Addressing a press conference in Beijing on Tuesday, he said India is a rapidly growing solar market, and that per unit cost, solar power generation is one of the lowest in the world.

“We had planned our investment around two years ago, but a bar on overseas investment delayed our project,” Xia added.

The company is also mindful that India plans to open a bid for 20 gigawatts, the world’s largest solar tender, that will require prospective companies to have local partners or manufacturing plants.

A worker installs a solar powered lamp in a public park in Chennai, India, April 11, 2017. /Reuters‍

The government also plans to install 175 GW of renewable energy by 2022.

“India is already China’s biggest market for solar products by sale value," Frank Shang, LONGi’s chief strategy officer said. "During 2017, China exports accounted for 24.1 percent of India’s solar products, with sales growth seen in both cells and modules."

LONGi is the world’s largest monocrystalline solar wafer maker. Monocrystalline silicon panels are known for better efficiency when compared to the multicrystalline silicon, widely used globally in setting up solar power projects.

When it was announced last month that the US had slapped 30 percent tariffs on imported panels, it emerged that India is also planning a similar move. Government is planning to impose a 70 percent duty on imported solar panels to protect local manufacturers.

“We respect the national government's decision to impose duties to protect local jobs. But solar energy needs a global consensus and free trade to curb pollution,” Xia told CGTN.

He added that rising pollution in India, especially in New Delhi, calls for large-scale generation of green energy to control emissions.

LONGi officials pointed out India should provide incentives for the green energy sector as it already has the lowest per unit generation of solar power. At present India generates one watt of solar power at 3-5 cents kW/hr and China produces the same at 5-7 cents kW/hr.

“Labor cost is still cheap in India and time is ripe for framing policies to boost green energy,” Xia said.